TaxTMI 
TaxTMI 
Deduction in respect of donations to certain funds, charitable institutions, etc.
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....-clause (vii) of clause (a) ^20[or in clause (c)] ^21[or in clause (d)] thereof, an amount equal to the whole of the sum or, as the case may be, sums of such nature plus fifty per cent of the balance of such aggregate; and] (ii) in any other case, an amount equal to fifty per cent of the aggregate of the sums specified in sub-section (2).] (2) The sums referred to in sub-section (1) shall be the following, namely :- (a) any sums paid by the assessee in the previous year as donations to- (i) the National Defence Fund set up by the Central Government; or (ii) ^104[****] (iii) the Prime Minister's Drought Relief Fund; or ^22[(iiia) the Prime Minister's National Relief Fund; ^95[or the Prime Minister's Citizen Assistance and Relief in Emergency Situations Fund (PM CARES FUND)] or] ^23[(iiiaa) the Prime Minister's Armenia Earthquake Relief Fund; or] ^24[(iiiab) the Africa (Public Contributions - India) Fund; or] ^25[(iiib) the National Children's Fund; or] (iiic)-(iiid) ^104[****] ^28[(iiie) the National Foundation for Communal Harmony; or] ^29[(i....
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....f such forces or their dependants; or] ^34[(iiihd) the Andhra Pradesh Chief Minister's Cyclone Relief Fund, 1996; or] ^35[(iiihe) the National Illness Assistance Fund; or] ^36[(iiihf) the Chief Minister's Relief Fund or the Lieutenant Governor's Relief Fund in respect of any State or Union territory, as the case may be : Provided that such Fund is- (a) the only Fund of its kind established in the State or the Union territory, as the case may be; (b) under the overall control of the Chief Secretary or the Department of Finance of the State or the Union territory, as the case may be; (c) administered in such manner as may be specified by the State Government or the Lieutenant Governor, as the case may be; or] ^37[(iiihg) ^110[the National Sports Development Fund set up] by the Central Government; or (iiihh) the National Cultural Fund set up by the Central Government; or] ^38[(iiihi) the Fund for Technology Development and Application set up by the Central Government; or] ^39[(iiihj) the National Trust for Welfare of Persons with Autism, Cerebral P....
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....guidelines, by notification in the Official Gazette, specify in this behalf] for- (i) the development of infrastructure for sports and games; or (ii) the sponsorship of sports and games, in India;] ^46[(d) any sums paid by the assessee, during the period beginning on the 26th day of January, 2001 and ending on the 30th day of September, 2001, to any trust, institution or fund to which this section applies for providing relief to the victims of earthquake in Gujarat.] (3) ^47[****] ^48[(4) Where the aggregate of the sums referred to in sub-clauses (iv), (v), (vi) ^49[,(via)] and (vii) of clause (a) and in ^50[clauses (b) and (c)] of sub-section (2) exceeds ten per cent of the gross total income (as reduced by any portion thereof on which income-tax is not payable under any provision of this Act and by any amount in respect of which the assessee is entitled to a deduction under any other provision of this Chapter), then the amount in excess of ten per cent of the gross total income shall be ignored for the purpose of computing the aggregate of the sums in respect of which deduction is to be allowed under sub-section (1)]. (5) This section applies t....
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....ed wholly or in part by the Government or a local authority; ^61[***] ^62[(vi) in relation to donations made after the 31st day of March, 1992, the institution or fund is for the time being ^98[approved by the Principal Commissioner or Commissioner;] ^81[****]] ^82[(vii) where any institution or fund had been approved under clause (vi) for the previous year beginning on the 1st day of April, 2007 and ending on the 31st day of March, 2008, such institution or fund shall, for the purposes of this section and notwithstanding anything contained in the proviso to clause (15) of section 2, be deemed to have been,- (a) established for charitable purposes for the previous year beginning on the 1st day of April, 2008 and ending on the 31st day of March, 2009; and (b) approved under the said clause (vi) for the previous year beginning on the 1st day of April, 2008 and ending on the 31st day of March, 2009.] ^97[****] ^99[(viii) the institution or fund prepares such statement for such period as may be prescribed and deliver or cause to be delivered to the prescribed income-tax authority or the person authorised by such authority such ....
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....iries as he thinks necessary in order to satisfy himself about- (A) the genuineness of activities of such institution or fund; and (B) the fulfilment of all the conditions laid down in clauses (i) to (v); (b) after satisfying himself about the genuineness of activities under item (A), and the fulfilment of all the conditions under item (B), of sub-clause (a),- (A) pass an order in writing granting it approval for a period of five years; or ^114[(B) if he is not so satisfied, pass an order in writing, rejecting such application and cancelling its approval, if any, after affording it a reasonable opportunity of being heard;] ^108[(iii) where the application is made under sub-clause (A) of clause (iv) of the said proviso or the application is made under clause (iv) of the said proviso as it stood immediately before its amendment vide the Finance Act, 2023, pass an order in writing granting it approval provisionally for a period of three years from the assessment year from which the approval is sought;] and send a copy of such order to the institution or fund: ^115[Provided also that the order under clause (i) and clause (iii)....
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....arch, ^68[2004]; ^69[(iv) the amount of donation remaining unutilised on the 31st day of March, ^70[2004] is transferred to the Prime Minister's National Relief Fund on or before the 31st day of March, ^71[2004];] (v) it renders accounts of income and expenditure to such authority and in such manner as may be prescribed, on or before the 30th day of June, ^72[2004].] ^83[(5D) No deduction shall be allowed under this section in respect of donation of any sum exceeding ^90[two thousand rupees] unless such sum is paid by any mode other than cash.] ^100[****] ^101[(5E) All applications, pending before the Commissioner on which no order has been passed under clause (vi) of sub-section (5) before the date on which this sub-section has come into force, shall be deemed to be applications made under clause (iv) of the first proviso to sub-section (5) on that date.] (6) ^79[****] Explanation 1.-An institution or fund established for the benefit of Scheduled Castes, backward classes, Scheduled Tribes or of women and children shall not be deemed to be an institution or fund expressed to be for the benefit of a religious community or caste within the meani....
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....; Inserted vide Third Schedule of the Finance (No. 2) Act, 1967 w.e.f. 01-04-1968 2. Substituted vide Section 17 of the Finance Act, 1976 w.e.f. 01-04-1977 before it was read as, "(1) In computing the total income of an assessee, there shall be deducted, in accordance with and subject to the provisions of this section, an amount equal to fifty per cent. of the aggregate of the sums specified in sub-section (2)." Earlier, Substituted vide Section 18 of the Taxation Laws (Amendment) Act, 1975 w.e.f. 01-04-1976 before it was read as, "(1) In computing the total income of an assessee, there shall be deducted, in accordance with and subject to the provisions of this section, an amount equal to,- (a) where the assessee is a company, fifty per cent, and (b) in the case of any other assessee, fifty-five per cent, of the aggregate of the sums specified in sub-section (2)." 3. Substituted vide Section 18 of the Finance Act, 1985 w.e.f. 01-04-1986 before it was read as, "(i) in a case where the aggregate of the sums specified in sub-section (2) includes any sum or s....
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..... Inserted vide Section 26 of the Finance (No. 2) Act, 1991 w.e.f. 01-04-1991 25. Inserted vide Section 15 of the Finance Act, 1982 w.e.f. 01-04-1983 26. Inserted vide Section 18 of the Finance Act, 1985 w.e.f. 01-04-1985 27. Inserted vide Section 26 of the Finance (No. 2) Act, 1991 w.e.f. 01-04-1991 28. Inserted vide Section 13 of the Finance Act, 1993 w.e.f. 01-04-1993 Earlier, Inserted vide Section 25 of the Direct Tax Laws (Amendment) Act, 1987 w.e.f. 01-04-1989 And was Omitted vide Section 95 of the Direct Tax Laws (Amendment) Act, 1989 w.e.f. 01-04-1989 before it was read as, "(iiid) the rural development fund set up and notified by the Central Government in this behalf; or (iiie) a trust or institution of national importance referred to in clause (d) of sub-section (1) of section 80F which has as its main object the undertaking of scientific research or carrying out of any rural development programme or any programme of conservation of natural resources or of afforestation of wasteland; or" 29. Inserted vide Section 13 of the Finance Act, 199....
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....d (vii) of clause (a) and in clause (b) of sub-section (2) exceeds the smaller of the following amounts, that is to say, - (i) ten per cent. of the gross total income (as reduced by any portion thereof on which income-tax is not payable under any provision of this Act and by any amount in respect of which the assessee is entitled to a deduction under any other provision of this Chapter), and (ii) five hundred thousand rupees, then, the amount by which such aggregate exceeds such smaller amount shall be ignored for the purpose of computing the aggregate of the sums in respect of which deduction is to be allowed under sub-section (1)." Earlier, Amended vide Section 19 of the Taxation Laws (Amendment) Act, 1970 w.e.f. 01-04-1968 And was Amended vide Section 17 of the Finance Act, 1976 w.e.f. 01-04-1977 And was Amended vide Section 16 of the Finance (No. 2) Act, 1977 w.e.f. 01-04-1978 And was Amended vide Section 15 of the Finance (No. 2) Act, 1980 w.e.f. 01-04-1981 49. Inserted vide Section 16 of the Finance Act, 1995 w.e.f. 01-04-1995 50. Substituted vide Section 31 of the Finance Act, 2000 ....
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.... "and" 59. Restored vide Section 95 of the Direct Tax Laws (Amendment) Act, 1989 w.e.f. 01-04-1989 Earlier, Inserted vide Section 9 of the Finance Act, 1973 w.e.f. 01-04-1974 And was Omitted vide Section 126 of the Direct Tax Laws (Amendment) Act, 1987 w.e.f. 01-04-1989 before it was read as, ", or is an institution approved by the Central Government for the purposes of clause (23) of section 10," 60. Omitted vide Section 30 of the Finance Act, 2002 w.e.f. 01-04-2003 before it was read as, "or is an institution approved by the Central Government for the purposes of clause (23) of section 10," 61. Omitted vide Section 33 of the Finance (No.2) Act, 2009 w.e.f. 01-04-2009 before it was read as, "and" Earlier, Inserted vide Section 24 of the Finance Act, 1994 w.e.f. 01-04-1994 62. Inserted vide Section 26 of the Finance (No. 2) Act, 1991 w.e.f. 01-10-1991 63. Substituted vide Section 13 of the Finance Act, 1993 w.e.f. 01-04-1993 before it was read as, "three" 64. Inserted vide Section 15 of the F....
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....rect Tax Laws (Amendment) Act, 1989 w.e.f. 01-04-1989 before it was read as, "(i) that, subsequent to the donation, the trust or institution has become ineligible for the deduction under section 80F due to non-compliance with any of the provisions of that section; (ii) that the deduction under section 80F is denied in relation to the application of any income arising to it from any investment referred to in clause (h) of sub-section (4) of that section where the aggregate of the funds invested by it in a concern referred to in the said clause (h) does not exceed five per cent. of the capital of that concern;" Earlier, Substituted vide Section 25 of the Direct Tax Laws (Amendment) Act, 1987 w.e.f. 01-04-1989 before it was read as, "(i) that, subsequent to the donation, any part of the income of the institution or fund has become chargeable to tax due to non-compliance with any of the provisions of section 11, section 12 or section 12A ; (ii) that, under clause (c) of sub-section (1) of section 13, the exemption under section 11 or section 12 is denied to the institution or fund in relation ....
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....1-04-2009 83. Inserted vide Section 28 of the Finance Act, 2012 w.e.f. 01-04-2013 84. Inserted vide Section 16 of the Finance Act, 2013 w.e.f. 01-04-2014 85. Substituted vide Section 4 of the Finance (No. 2) Act, 2014 w.e.f. 01-06-2013 before it was read as, "Commissioner" 86. Inserted vide Section 22 of the Finance Act, 2015 w.e.f. 01-04-2015 87. Inserted vide Section 22 of the Finance Act, 2015 w.e.f. 01-04-2016 88. Inserted vide Section 22 of the Finance Act, 2015 w.e.f. 01-04-2015 89. Inserted vide Section 22 of the Finance Act, 2015 w.e.f. 01-04-2016 90. Substituted vide Section 35 of the Finance Act, 2017 w.e.f. 01-04-2018 before it was read as, ""ten thousand rupees"" 91. Substituted vide Section 33 of the Finance Act, 2020 w.e.f. 01-06-2020 before it was read as, "approved by the ^85[Principal Commissioner or Commissioner] in accordance with the rules ^80[made in this behalf, and]:" 92. Inserted vide Section 33 of the Finance Act, 2020 w.e.f. 01-06-2020 93. Inserted vide Section 33 of the Finance Act, 2020 w.e.f. 01-06-2020 ....
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....ncement of its activities, whichever is earlier; (iv) in any other case, at least one month prior to commencement of the previous year relevant to the assessment year from which the said approval is sought: Provided further that the Principal Commissioner or Commissioner, on receipt of an application made under the first proviso, shall,- (i) where the application is made under clause (i) of the said proviso, pass an order in writing granting it approval for a period of five years; (ii) where the application is made under clause (ii) or clause (iii) of the said proviso,- (a) call for such documents or information from it or make such inquiries as he thinks necessary inorder to satisfy himself about- (A) the genuineness of activities of such institution or fund; and (B) the fulfilment of all the conditions laid down in clauses (i) to (v); (b) after satisfying himself about the genuineness of activities under item (A), and the fulfilment of all the conditions under item (B), of subclause (a),-- (A) pass an order in writing granting it approval for a period of five years; or (B) if he is not so sa....
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....sp;Section 4 of the The Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 w.e.f. 01-04-2021 102. Omitted vide Section 4 of the The Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 w.e.f. 01-06-2020 before it was read as "^93[Explanation 2A.- For the removal of doubts, it is hereby declared that claim of the assessee for a deduction in respect of any donation made to an institution or fund to which the provisions of sub-section (5) applies, in the return of income for any assessment year filed by him, shall be allowed on the basis of information relating to said donation furnished by the institution or fund to the prescribed income-tax authority or the person authorised by such authority, subject to verification in accordance with the risk management strategy formulated by the Board from time to time.]" 103. Inserted vide Section 4 of the The Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 w.e.f. 01-04-2021 104. Omitted vide Section 40 of the Finance Act, 2023 w.e.f. 01-04-2024....